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Unaudited Condensed Results For The Six Months Ended 27 June 2018
DELTA EMD LIMITED
Registration number 1919/006020/06
Income tax number 9375057719
Share code: DTA ISIN: ZAE000132817
("DELTA EMD" or "the Group")
UNAUDITED CONDENSED RESULTS
FOR THE SIX MONTHS ENDED 27 JUNE 2018
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
Unaudited Unaudited Audited
six months six months year to
to June to June December
2018 2017 2017
R'000 R'000 R'000
Interest received 2 774 3 182 6 203
Administrative expenses (1 089) (1 147) (2 320)
Expenses related to shut down of business (2 521) (4 517) (2 223)
Impairment on assets held for sale (15 949) - -
Rental and other income 1 207 878 2 299
(Loss)/profit for the period before taxation (15 578) (1 604) 3 959
Taxation - (587) (623)
(Loss)/profit for the period (15 578) (2 191) 3 336
Total comprehensive (loss)/profit for the period (15 578) (2 191) 3 336
Attributable to equity holders of parent company
(Loss)/profit for the period (15 578) (2 191) 3 336
Total comprehensive (loss)/profit for the period (15 578) (2 191) 3 336
Number of shares in issue ('000) 49 166 49 166 49 166
Diluted and weighted number of shares in issue ('000) 49 166 49 166 49 166
Attributable (loss)/profit per share (cents)
- basic and diluted (31.7) (4.5) 6.8
CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
Unaudited Unaudited Audited
six months six months year to
to June to June December
2018 2017 2017
R'000 R'000 R'000
ASSETS
Current assets
Trade and other receivables 1 037 945 808
Bank balances and cash 78 561 80 997 80 649
Taxation receivable - 141 -
Non-current assets held for sale 10 000 25 949 25 949
Total assets 89 598 108 032 107 406
EQUITY AND LIABILITIES
Total shareholders' funds 79 774 89 825 95 352
Non-current liabilities
Current liabilities
Trade and other payables 2 687 2 808 3 283
Short-term provisions 7 129 15 399 8 763
Taxation payable 8 - 8
Total equity and liabilities 89 598 108 032 107 406
Net asset value per share (cents) 162 183 194
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
Unaudited Unaudited Audited
six months six months year to
to June to June December
2018 2017 2017
R'000 R'000 R'000
Cash utilised by trading (2 404) (4 784) (2 244)
Movement in current and non-current provision (1 633) (638) (7 273)
Increase in working capital (825) (20 006) (19 393)
Cash utilised by operations (4 862) (25 428) (28 910)
Net interest received 2 774 3 182 6 203
Taxation paid - (587) (474)
Cash outflow from operating activities (2 088) (22 833) (23 181)
Net decrease in cash and cash equivalents (2 088) (22 833) (23 181)
Cash and cash equivalents at beginning of period 80 649 103 830 103 830
Cash and cash equivalents at end of period 78 561 80 997 80 649
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Share capital Accumulated
and premium profit Total
R'000 R'000 R'000
Balance at 27 December 2016 4 856 87 160 92 016
Loss for the period - (2 191) (2 191)
Balance at 27 June 2017 4 856 84 969 89 825
Profit for the period - 5 527 5 527
Balance at 27 December 2017 4 856 90 496 95 352
Loss for the period - (15 578) (15 578)
Balance at 27 June 2018 4 856 74 918 79 774
NOTES
Unaudited Unaudited Audited
six months six months year to
to June to June December
2018 2017 2017
R'000 R'000 R'000
1. Reconciliation between attributable earnings and
headline earnings
Attributable (loss)/profit after taxation (15 578) (2 191) 3 336
Impairment on asset held for sale 15 949 - -
Headline earnings/(loss) attributable to ordinary shareholders 371 (2 191) 3 336
Attributable headline earnings/(loss) per share
- basic and diluted 0.8 (4.5) 6.8
2. Basis of presentation
The Group is domiciled in South Africa. The unaudited condensed consolidated financial results at and for the period ended
27 June 2018 comprise the company and its subsidiaries (the "Group").
The Group's principal accounting policies are in terms of IFRS and have been applied consistently over the current and prior
financial periods.
On 5 March 2014 the company announced that the board of directors had taken the decision, subject to approval by the
company's shareholders, to discontinue the operations in a phased and orderly manner during 2014 and to realise value for the
company's assets between 2014 - 2018. The decision was approved at the Annual General Meeting of the company held on
9 May 2014. The company will be wound down and de-registered in due course. The above information highlights that the going
concern principle is not applicable in the preparation of the company's financial statements. When the company ceases trading
the directors are of the opinion that the company will be in a position to discharge all of its liabilities, due to the company's cash
resources and to recover the assets at their carrying amounts. The effect, if any, of preparing the financial statements, other than
on the going concern basis will be negligible. Consequently the financial statements have been prepared on a basis consistent
with IFRS which among other things, requires writing assets down to their recoverable amounts. It also requires recognising a
liability for contractual commitments that may have become onerous as a consequence of the decision to cease trading.
The Group's condensed financial results have been prepared in accordance with the requirements of the JSE Limited Listings
Requirements for interim reports, and the requirements of the Companies Act applicable to condensed financial statements.
The Listings Requirements require interim reports to be prepared in terms of IAS 34: Interim Financial Reporting, as well as the
SAICA Financial Reporting Guides as issued by the Accounting Practices Committee, Financial Pronouncements as issued by
the Financial Reporting Standards Council. For all the financial assets and liabilities, the carrying value approximates the fair value.
COMMENTARY
The Group realised a loss for the period before taxation of R15.6 million compared to a loss of R1.6 million for the same period last year.
The loss reported resulted from an impairment of R15.9 million that was raised on the assets held for sale. The income for the period
totalled R4 million (2017: R4 million) and was comprised of R2.8 million in interest earned, and R1.2 million in rental income.
Ongoing cost for the Nelspruit plant paid during the period totalled R2.5 million (2017: R4.5 million).
Net cash utilised by operations during the period totalled R4.9 million (2017: R25.4 million).
The Group's period end cash balances decreased by R2 million from R80.6 million to R78.6 million.
The only remaining non-current asset held by the Group is the former plant site located in Nelspruit. The directors have, based on
experience trying to sell the plant site during the past several years and based on realisable prices from potential buyers, decided to
impair the value of the plant site from R25 949 000 to R10 000 000, resulting in an impairment expense of 32.4 cents per share.
SUBSEQUENT EVENT
On 14 September 2018 the Group announced on SENS that the company has entered into a conditional sales agreement to dispose
of the entire issued share capital of EMD Investments (Proprietary) Limited to Viridi Developments Proprietary Limited ("Viridi"), which
in turn will result in the indirect disposal of the Nelspruit plant site held by Delta EMD (Proprietary) Limited, a subsidiary of EMD
Investments (Proprietary) Limited. The half year figures include the plant site as the only asset held for sale and do not make provision
for the sale of the shares EMD Investments (Proprietary) Limited.
The agreed cash purchase price is the aggregate sum of R12 500 000 (twelve million five hundred thousand rand). The cash purchase
price of R12 500 000 includes a cash balance totalling R9 047 648 that will remain in the disposed entities when sold, R5 000 000 of
this cash will be utilised for ongoing operations and R4 047 648 cash will be utilised to settle the liabilities remaining in the entities after
the transaction. Should the transaction be approved by shareholders it may result in an estimated further loss to the company, before
the cost of the circular, of approximately R3.7 million.
The directors have decided to seek shareholder approval of the proposed sale. A circular will be provided to shareholders in due course
and the directors anticipate that if all conditions precedent are satisfied the sale will complete during December 2018. The cost for the
preparation of this circular and other cost related to the closure of the transaction will also be an additional charge to the company.
Any forward-looking comments in this announcement have not been reviewed nor reported on by the company's auditors.
DIRECTORATE
No change.
PREPARER OF FINANCIAL STATEMENTS
These condensed consolidated financial statement have been prepared by EJ Nel CA(SA) in her capacity as Financial Director of
the Group.
TG Atkinson EJ Nel (Financial director)
28 September 2018
Registered office
15 Heyneke Street, Industrial Site, Nelspruit, 1200
Transferred Secretaries
Computershare Investor Services Proprietary Limited
Rosebank Towers, 15 Biermann Avenue, Rosebank, 2196
Directors
Independent non-executive: AC Hicks, BR Wright, L Matteucci
Non-executive: P Baijnath
Executive Chairman: TG Atkinson* (Chairman) *USA
Executive: EJ Nel CA(SA) (Financial Director)
Sponsor: Deloitte & Touche Sponsor Services Proprietary Limited
Date: 28/09/2018 10:56:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of
the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct,
indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on,
information disseminated through SENS.
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